04 December 2025 – The Club of Rome, in partnership with the European Investment Bank (EIB) Institute, has released a new report highlighting how finance can unlock the transformative innovation required to ensure Europe’s competitiveness in a rapidly changing global landscape.
As the EU seeks to strengthen its competitiveness and accelerate breakthrough innovation, Rewiring finance for transformative innovation argues that Europe cannot rely on financing incremental fixes and short-term gains to address the deep technological, social and ecological transitions now underway. By reframing innovation through a systemic lens – to include new business models, governance structures and cultural narratives – the report offers a new perspective on the EU’s competitiveness agenda and calls for finance to champion transformative, mission-driven innovation across the continent.
The report draws on insights from a series of high-level dialogues convened by the Club of Rome and the EIB Institute, bringing together thought leaders, policymakers and financial practitioners from across Europe. Co-author Peter Blom, former CEO of Triodos Bank and member of the Club of Rome, said:
“Transformative innovation is essential if we are to respond meaningfully to today’s interconnected crises. This report shows that finance can be a powerful catalyst and enabler for the kinds of breakthroughs that shift entire systems, not just improve them at the margins. By aligning financial decisions with long-term societal and planetary impact, we can unlock innovations that ensure a thriving future for all.”
Aligning finance with transformative innovation
The report emphasises that while sustainable finance has grown, financial systems remain largely misaligned with the ambition of transformative innovation. Short-term risk models, fragmented funding streams and a lack of hybrid solutions continue to hinder innovations that could reshape Europe’s strategic sectors – whether in clean energy, circular materials, food systems or nature-based solutions.
To realign finance with transformation, the report identifies five interrelated pathways for change:
- Prioritising impact and mission: Placing long-term public value at the heart of financial mandates and investment decisions.
- Building internal capacity for innovation: Equipping financial institutions with the skills and systems thinking needed to assess and support complex, cross-sector transitions.
- Embracing risk and uncertainty: Developing forward-looking frameworks that enable experimentation and high-impact investment.
- Full-spectrum finance for the innovation lifecycle: Ensuring support across the innovation lifecycle, from early-stage ideas to large-scale deployment.
- Strengthening institutional capital ecosystems: Fostering collaboration between public and private actors to build coherent, mission-driven innovation ecosystems.
Through examples from institutions such as BBVA and Invest-NL, the report shows that elements of transformative finance are already emerging in practice. These pioneers demonstrate that that balancing impact, risk and return can unlock high-potential innovations essential to Europe’s competitiveness and resilience.
A call for co-creation
The report calls for policymakers, financial leaders and civil society to co-create a financial system capable of enabling transformative innovation at scale. Finance must act not just as a source of capital, but as an active enabler of Europe’s long-term strategic priorities.
Jean-Pierre Vidal, acting head of the EIB Institute, said: “The EIB Group plays a pivotal role in driving innovation across Europe by uniting public purpose with private initiative. This strengthens Europe’s competitiveness in a lasting way and lays the foundations for sustainable growth and prosperity for the future.”
This publication marks the culmination of this collaboration between the Club of Rome and the EIB Institute. Together, the two institutions have convened a community of practice exploring how public and private finance can be rewired to serve long-term societal wellbeing.
Sandrine Dixson-Declève, honorary president of the Club of Rome and co-author of the report, concluded: “Transformative innovation requires that we reshape the systems and values that govern our societies. To deliver real benefits for people, planet and prosperity, finance must prioritise solutions that build resilience and equity, not just short-term returns.”
Download the report
